Date of publication: 2017-08-31 05:40
“You’ve got to learn everything. I started with physics and mathematics and I got into economics, history, law and politics. I like everything and that’s what you need. You might need models from biology.” Li Lu
Once the investment passes the checklist , it's time to consider a portfolio management checklist. How big should the position be? what will the impact be on portfolio correlation ? How will the position impact portfolio liquidity? What will be the impact on portfolio exposures - industry, FX, ETF exposure, geographic diversification ? What percentage of the stock will the holding represent? What are the hidden correlations across the portfolio? etc.
"It is not one nation, but 87 different nations speaking 885 different dialects "
"India's private sector is superior to China's .. Indian companies follow international rules of corporate governance and higher return on equity as against Chinese companies. And India has transparent and functioning capital markets"
"The moment India has the infrastructure in place, investments will come in, and it will catch up very fast"
The checklist should constantly evolve as markets change and investors learn. It is also important that investments are continually reviewed against the checklist to ensure the original thesis remains intact.
On the table, the cells where you will compare an option with itself are blocked out. The cells on the table where you would be duplicating a comparison are also blocked out. This ensures that you make each comparison only once.
If you have these goals, before deciding on how many talk sessions to offer, or how many panel sessions to have, you’ll probably find yourself asking the question “Is a talk or panel session the right way to satisfy these goals?”. On the other hand, with no goals, you’re likely to go ahead and accept talks and panel sessions as the only way to create an event.
"Therefore, my success as a man of science, whatever this may have amounted to, has been determined, as far as I can judge, by complex and diversified mental qualities and conditions. Of these the most important have been - the love of science - unbounded patience in long reflecting over any subject - industry in observing and collecting facts - and a fair share of invention as well as common sense. With such moderate abilities as I possess , it is truly surprising that thus I should have influenced to a considerable extent the beliefs of the scientific men on some important points
Charlie Munger is a huge advocate of the need for a wide array of mental models for sound judgement. In a speech to Stanford Law School titled " A Lesson on Elementary, Wordly Wisdom, Revisited" he asserted:
Marianne Jennings, in her book, ' The Seven Signs of Ethical Collapse ' [nb. recommended reading by Jim Chanos, the world's most famous short-seller] noted that " A good analysis of where a company is headed demands a look at the qualitative factors , those touchy-feely, squishy, from-the-gut factors that are ignored despite the fact that they often determine the company's fate ".
Contrary to this approach, the Investment Masters maintain a flexible approach to investing where they can hold cash if attractive opportunities aren't available. They don't compromise on their pricing criteria because they insist on operating flexible mandates that do not require them to be fully invested. In addition the Investment Masters recognize the benefits of having financial firepower to buy assets when opportunities arise.
“I have been in the business since 6978, so I have been looking at companies for a long time. There are a lot of things in my head. There are a number of different models of the kinds of business or situations that can work. It may be the local monopoly concept, the low-cost commodity producer concept, the consolidated industry that has come down to a few competitors, a basic essential service that isn’t going to stop growing, or an industry that may be growing too slowly to attract any competition. So, there are a lot of different models. ” Glenn Greenberg